Central Bank of Nigeria
Insurance, Insurance Industry, Nigeria
The growth in the number of insurance companies in Nigeria between 1988 and 1989 revealed the preference of the investors in the industry towards non-life underwriting business. In addition, only one out of the six new entrants into the industry was jointly owned. The unattractiveness of the industry to foreign investors was partly due to the perceived decreasing prosperity in the business as well as the unfavourable investment climate of the Nigerian economy. With many of the insurance companies now scheduled to be privatised, greater efficiency is expected in their operations, particularly among those previously controlled by the government. In addition, the report justifies the need to create awareness in the mind of overseas investors to invest more in the industry as the current Industrial Policy of Nigeria allows greater foreign ownership participation. The perceived better performance in terms of income earned, as well as the value of investment in fixed assets of the insurance companies appeared to be an illusion as their expenditure package was equally high while adjustment for the declining value of the naira would have revealed that performance actually decreased in real terms.
CBN Economic and Financial Review
Central Bank of Nigeria (1991). Nigeria's Insurance Industry in 1989. CBN Economic and Financial Review. 29(3), 279-297.